Movie action man-turned-Governor of California Arnold Schwarzenegger has invested in a new luxury housing project in Santa Barbara, California.

The Terminator star and his wife Maria Shriver have paid almost $5 million for a 25-acre portion of the Rancho Monte Alegra project.

The officials behind the ambitious venture hope to turn a sprawling 19th century ranch, complete with vast areas of natural beauty, into a private retreat for up to 25 families.